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Denis Hébert

HID reportedly paid $60m for Lumidigm

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Wednesday, February 12, 2014

Updated 2/13/14

Identity solution provider HID this week made its second purchase in a month, buying fingerprint biometric provider Lumidigm.
In January,  HID announced that it had purchased IdenTrust, a provider of digital identities.

The Albuquerque Journal is reporting that HID paid more than $60 million for the biometric company. Through a spokesperson HID said that because this is a "private transaction" the company would not comment on the purchase price.

I was not able to speak to Jeff Kessler at Imperial Capital about the deal. (Imperial advised Lumidigm,) but I did get a look at a research brief Kessler published on Feb. 12, where he said this deal "continues to put distance between Assa Abloy’s HID Division and the competition in the way of interoperable, identity solutions for government and enterprise users."

Here's more from Kessler's brief:

In our opinion, Assa Abloy has made a concerted effort to become the undisputed leader in higher technology access control and identification solutions for not just enterprises and institutions, but for Government as well—the latter is an area in which it did not have a lot of traction until 2011. However, a series of acquisitions have turned the company into the leader in this segment from a revenue perspective. This is unlike Safran (which purchased L-1 in 2010), which is primarily involved in registration and border identification. The challenge remains for Assa Abloy and HID to integrate these acquired technologies and companies carefully, to let some of the more creative sectors provide both competitive advantage to Assa Abloy, yet still remain the leading providers of software and identity solutions to other companies in the industry as well.

Founded in 2001 and based in Albuquerque, N.M., Lumidigm has 33 employees. Its 2014 sales are expected to be $25 million, and the deal is expected to be accretive to earnings per share, according to HID parent company ASSA ABLOY.

Common problems with fingerprint biometrics include that fact that the technology will not work in harsh environments or when peoples’ fingers are dirty. In addition, some peoples’ fingerprints are simply not detectable. Lumidigm’s technology overcomes these problems, HID said, with its patented “multispectral imaging technology [that] uses multiple light spectrums and advanced polarization techniques to extract unique fingerprint characteristics from both the surface and subsurface of the skin.” The technology is also highly effective in detecting “imposter or ‘spoof’ fingerprints,” according to HID.  

Lumidigm’s products are used in verticals such as banking, healthcare, entertainment, and government services. HID is also interested in Lumidigm’s “premier global customer base,” HID CEO Denis Hebert said in a prepared statement.  

The opportunity for HID, according to a statement from Bob Harbour, executive chairman of Lumidigm is: “to apply multispectral imaging capabilities to credential acquisition and authentication, gesture recognition, and other image-based process control systems, making multi-factor authentication on a single, integrated device a reality.”

HID acquires IdenTrust

Identity solution provider also launches channel program and goes to Texas
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01/22/2014

AUSTIN, Texas—From its newly christened headquarters here, identity solution provider HID Global today announced it has acquired IdenTrust, a provider of digital identities.

HID opens new world headquarters

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01/20/2014

AUSTIN, Texas—The new HID Global World Headquarters and North American Operations Center is now open in Austin, Texas, the company announced Jan. 13.

HID’s Hébert evaluates ‘move to mobile’

Annual HID Global Strategy Briefing at ISC West focuses on potential and pitfalls of mobile access
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04/15/2013

LAS VEGAS—A talkative crowd had gathered and a long line formed outside of a Venetian ballroom well before the doors opened for Denis Hébert’s annual HID Global Strategy Briefing and luncheon on April 11.

HID Global acquires Codebench

Software company bring expertise, integration with 28 PACS
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01/08/2013

IRVINE, Calif.—In a deal that brings new capabilities for its government customers and promise for increasing its commercial business, HID Global announced Jan. 8 that it has acquired Codebench, a physical security identity management company.

HID Global to build new operations center

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10/19/2012

AUSTIN, Texas—HID Global, a leader in identity solutions, announced Oct. 17 its plans to build a new center of operations here.

HID acquires software provider

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01/04/2012

IRVINE, Calif.—Seeking to take advantage of a market that HID Global executives say is “grossly under-penetrated,” HID has acquired EasyLobby, a provider of visitor management software and visitor badge printing solutions.

More love for 'phone as credential'

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Monday, November 7, 2011

Ingersoll Rand Security Technologies, manufacturer of Schlage contactless smart credentials and readers, released a report today that says “two-thirds of American college students are interested in using their cell phone in place of an ID card.” The press release I received said it was “independent research undertaken by Ingersoll Rand Security Technologies” but it did not include hard numbers, sample size or information about margin of error. While I assume I could get those numbers from IR, in this case, I’m not skeptical at all about their findings, even without seeing their numbers. If anything, I’d guess their numbers are low.

The press release points out that “people will almost always notice that their phone is lost faster than noting a card is missing.” During a presentation at ASIS, where HID CEO Denis Hebert, talked about their NFC pilot project at Arizona State University, Hebert said it takes a student like six minutes to realize that they lost their phone, whereas it could take up to 24 hours to realize they lost a key.

The release said that nearly half of all students identify their cell phones as their favorite personal electronic device. Again, that’s probably an understatement--and it's not just college students who are attached to their phones. Here’s a funny NYT OpEd from a month ago about how iPhone owners’ response to their phones is more akin to love than anything else.

Back to the release, in a statement, Beverly Vigue, Ingersoll Rand Security Technologies VP of education markets said: “There are a great number of early adaptors in the college population that are already sold on cell phones being a credential, just like they were sold on the use of smart cards and biometrics previously … [this] ties in nicely with the budding discussion of NFC (near field communication) which will inevitably end up on cell phones. No Visa card; no MasterCard card…only your cell phone will be needed for cashless payments or to show your identity.” Further, she notes that  “the solution is still in the testing phase and not yet ready for mass commercialization … plus, it is hard to determine what the phone providers will charge for having this attribute.”

So a variety of manufacturers are clearly all over this new technology, but how soon will phone credentials be ready for prime time in the commercial market?

Funny you should ask. This is one of the many topics that will be discussed at TechSec 2012 (Delray Beach, Fla. Feb. 7&8). One session: “The Smartphone: ID of the Future,” will explore NFC and its use for various physical access control applications. In addition to the ASU pilot, HID is doing pilot projects with non-education end users, and those end users will be at TechSec to talk about whether the love for “smartphone as credential” is just as strong in verticals other than education. More important, Hebert, the end users and an integrator will discuss what it will take to move this technology into the maintstream and what this emerging technology will mean for integrators' bottom line.

ASIS 2011: News and notes from the show floor

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09/22/2011

ORLANDO, Fla.—There was plenty of news being made at ASIS 2011, which took place at the Orange County Convention Center Sept. 19-21. Below are some editor round-ups from ventured out onto the show floor to collect news and other goings-on.

TechSec 2012 preliminary educational program announced

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09/22/2011

ORLANDO, Fla.—Details of the TechSec 2012 educational program were announced by conference organizers on Sept. 20, the second day of the ASIS show here.

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